A Gold Loan is convenient than a personal loan

Let us briefly learn about each parameter and how it differs from both that is a loan against gold and personal loans. We shall also see what kind of profits the gold loan provides over the unsecured field of personal loans.

PROCESSING TIME:-

Well, when we first take in ten parameters related to the processing duration to avail the gold loan personal loan, the time differs in both. The processing duration of a gold loan tends to be pretty good and fast whereas the processing duration of a personal loan is long and slow when compared. The PNB bank gold loan gives in their word that the processing time in their bank is just 30 minutes. The processing duration associated with a gold loan is just a matter of a few minutes to hours. While when we refer to the processing duration involved in getting a user his or her loan, it may almost take about 5 to 7 days which is up to a week in basic. So this way gold loans are offered quicker and faster than personal loans.

DOCUMENTATION:-

Nowadays, for every process, some of the documents are to be submitted as proof, and trust is made mandatory. Keeping that point in mind, it applies similarly to both gold loans and personal loans as well. The documentation needed and required by the lending organization for gold loans and personal loans may differ. And if we talk about the case of a gold loan to be accessed by the borrower, he or she is considered lucky since they just require to submit a very minimal amount of reports, which consists of very basic ones, that is general government ID proofs, which are nothing but Aadhar proof, PAN card, Driving license, etc and any among proofs are accepted. While in the case of the personal loan to be regarded, the documentation is on a higher level, that deals with the income tax return, etc. So the general crowd of users chooses gold loans over personal loans when documents are regarded.

PROCESSING FEE:-

To take into account the processing cost, this is one of the primary key parameters to the users as it may also help them eventually to calculate and make a point of the actual cost of availing for the loan they are going to get. So this means, the less the processing cost, the better preference on selecting either a gold loan or personal loan. The processing cost, which banks make is very less, which ranges from just ₹10 onwards and few others at the most may cost up to 2%. But when we regard the processing fee associated with personal loans, it may go almost to 3% which is a lot more in comparison to the loans against gold and that is why users have their preferences on gold loans more.

INTEREST RATE:-

If we talk in basic terms, the gold loan interest rate ranges from 7.25% to 29% while the personal loan offers a range between 8.45% to 26%. Every user needs to maintain and see to it that he or she has a nice and high credit score since the interest cost being offered takes into consideration of the credit history as well. However, the gold loan is to be considered as it presents satisfactory interest rates.

REPAYMENT SCHEMES:-

Repayment is one of the major points for every user to fulfill their payments accordingly and eventually to maintain a good credit history. Hence banks usually make sure to offer a wide number of repayment selections and eventually a user can choose whichever he or she feels convenient.

Conclusion:- In this case, gold loans present a variety of repayment options for their users while the personal loans just put forward an EMI scheme of repayment. Therefore the gold loans are opted for by more candidates.

Some different ways to use the Personal Loan

Personal loans always come with advantages as well as disadvantages. There is also a very big advantage being that the lender or any bank does not have a say in how you spend the amounts it depends on you. Also, remember freedom comes with responsibility. You always need to spend the money responsibly.

If you wish to avail the personal loan in an emergency you do not have time to think over it then avail very little more money than you need, use some amount for certain emergency and also use the rest to invest in the right places which will always help you in paying the EMIs of the personal loan. If you do have much time to think over it and get the best deal possible then do simple research on different personal loans then find out about the different best banks and their schemes. Banks have schemes for different people and those schemes are also designed to fit your needs and they will give a very good deal on rate of interest and the tenure.

Banks always provide loan amounts that will be more suitable for that customer demographic. This bank tends to have loans for demographics such as farmers, doctors, the public sector, or other people. For farmers the best deal of all they have a very less rate of interest and quite comfortable tenures. Doctors have an added advantage of getting the personal loan of more amount, based on their credit scores doctors can simply avail loans of very huge amounts. Personal loan eligibility criteria they have to fulfill whenever avail any person whether they are doctors or farmers.

If you also want to invest the money borrowed from the personal loan then the market is a very great way to invest. Although research, as well as study, are always required for investments in the market. You also need to study the market for different companies and how their market performed in the last few years. If you have availed a very large amount of loan and then investing in the market then even a very small price on your market will give you a very better return over investment.

For investments in any market, you are buying a very small piece of the company’s assets. This can have very good returns although if the company faces loss then you will also lose a lot of money so always make sure you are investing in a company that is more likely to make the profits at least some years down the line. If you can see some of the company growing then you can manually invest more in the assets by removing your money from the assets that are not making money for you. If you apply for other loans their interest rate is very high hence you can simply avail of a personal loan to use for your own business. Their interest rate is very less. This is the very best way to invest the money as you do not need to pay other loan interest rates but you are more likely to make returns because you are in charge of investing and making more money. Also being the driver of your business finances can simply make you pay more money towards any loan on time, build your credit score, pay the very first loan back in time.

Conclusion

Syndicate Bank personal loan rate of interest is very few people want to avail personal loan only from this bank. Their interest rate is only 9.99 per annum; it is very less compared to other banks. You can use the loan amount for any purpose like if you want to start your business then you can easily avail a personal loan to purchase assets or other things, personal loan you can also use for investing in any market it depends on you, whenever you choose market always see company last years performance if they have good profit then invest otherwise you do not need to invest.

Common mistakes to avoid when applying for a Gold Loan

We are here again today, to save you from ruining up the gold loan process even before you apply because we all know what kind of advantage gold loans possess to an individual. So we will now tell you a few of the misconceptions or myths people tend to believe or moreover on what common mistakes people generally make without knowing while applying for the gold loans.

First and foremost, no matter what field you are going to step in, a piece of basic minimum knowledge is a must when anyone is going to start or step into something new. Likewise, the borrowers or the customers, being excited to avail a gold loan for themselves, often delay or forget to do the research and move forward just to directly apply. This can be avoided by doing a small amount of background research. This research is nothing hectic, but it involves more to talk to the already existing users of gold loans or browsing through the web on what lending institutions are good to go for a gold loan. This is nothing but, as we all know several ranges of banks and non-banking financial companies offer the borrowers the gold loan and as a borrower, it is your responsibility to check their authenticity and credibility of the lenders and their institutions.

For instance, if a borrower wishes to take himself or herself with a gold loan from PNB bank, then he or she should use the background research skill to know what the PNB gold loan rate and PNB Bank Gold loan offer the customers and what the eligibility factors should he or she should be fulfilled to get themselves with a gold loan from that particular bank. Without proper research, the customers or borrower can be at a major loss and all their gold articles can be wasted for no good use. Therefore we urge everyone to go for lending institutions that are reputable and trustworthy as a whole.

Always borrowers just get convinced on whatever the first offers the lenders make or offer them with, that is borrowers should never be easy going. The borrower has every right to demand what is beneficial for him or her. For this purpose, the borrower has to also compare the costs of both patent and latent. With this comparison, a borrower can walk towards the lending institutions with more confidence and can show the lenders his studies and comparison of the cost, so that the bank would offer the borrowers with better and best deals and offer something at lower interest rates.

A borrower should always be careful before opting for a repayment method that the banks offer and see to it that they are fully capable enough to repay accordingly by the chosen scheme. This should be taken care of because, if he or she doesn’t pay the lenders bank on time, it will reflect as a bad credit score and the gold that was handed over will be liquidated by the banks and borrowers would be at a complete loss all through the gold loan process. Therefore, as a borrower, everyone must make it a point to complete their payments up to date and right on time and maintain a good credit score.

Conclusion :- As a borrower, none should let the calculations part just to the banks or NBFCs alone but should make it a point to have understood and calculate the rates they are being paid for, so that everyone understands and the procedures remain transparent enough from both the ends without having to cause trouble. And for this purpose, the gold loan EMI calculator is also made available and an easy way for the borrowers to calculate.